# Capital Account Openness and CA Reversal Prediction

| Variable | Full Sample | Interaction | KAOPEN: Closed | KAOPEN: Mid | KAOPEN: Open |
|:---|---:|---:|---:|---:|---:|
| Z_1 | -0.5539** | -0.5424** | -0.6155* | -1.2294** | -0.0054 |
| | (0.2339) | (0.2371) | (0.3694) | (0.4854) | (0.4066) |
| Z_2 | 0.0984*** | 0.0954*** | 0.1087* | 0.1950*** | 0.0175 |
| | (0.0351) | (0.0360) | (0.0572) | (0.0729) | (0.0603) |
| Z_3 | -0.0046*** | -0.0044*** | -0.0050** | -0.0083*** | -0.0014 |
| | (0.0014) | (0.0015) | (0.0024) | (0.0030) | (0.0024) |
| fiscal_bal_gdp | -0.0033*** | -0.0033*** | -0.0026 | -0.0022 | -0.0045*** |
| | (0.0010) | (0.0010) | (0.0018) | (0.0021) | (0.0016) |
| nfa_gdp_lag | 0.0224*** | 0.0228*** | 0.0204* | 0.0136 | 0.0254*** |
| | (0.0049) | (0.0049) | (0.0117) | (0.0111) | (0.0060) |
| rgdp_growth | -0.0019** | -0.0019** | -0.0017 | 0.0004 | -0.0033** |
| | (0.0009) | (0.0009) | (0.0012) | (0.0022) | (0.0016) |
| kaopen | 0.0005 | -0.0036 | | | |
| | (0.0040) | (0.0063) | | | |
| Z_1_x_kaopen | | 0.2129 | | | |
| | | (0.1562) | | | |
| Z_2_x_kaopen | | -0.0307 | | | |
| | | (0.0236) | | | |
| Z_3_x_kaopen | | 0.0012 | | | |
| | | (0.0010) | | | |
|:---|---:|---:|---:|---:|---:|
| N | 5489 | 5489 | 2174 | 1295 | 2020 |
| R² | 0.0285 | 0.0290 | 0.0083 | 0.0215 | 0.0589 |
| Countries | 174 | 174 | 112 | 118 | 91 |

*Panel GLS with country and year fixed effects. Standard errors in parentheses. KAOPEN terciles: Closed (≤33rd pctile), Mid, Open (≥67th pctile).*
*\*p<0.1, \*\*p<0.05, \*\*\*p<0.01*